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1.The price of a stock today is $1804.98. The price of the stock 1 year ago was $2039.51. The stock didn't pay dividends during the

1.The price of a stock today is $1804.98. The price of the stock 1 year ago was $2039.51. The stock didn't pay dividends during the year. What is the percentage return of the stock over the year? (In percentage)

2. The annual returns of stock XYZ of the last four years are 8%, 5%, -4%, and 12%. What is the average annual return in percentage?

3. The annual returns of stock XYZ of the last four years are 8%, 5%, -4%, and 12%. What is the geometric mean annual return in percentage?

4.The annual returns of stock XYZ of the last four years are 8%, 5%, -4%, and 12%. What is the standard deviation of stock return in percentage?

5.

Compute the expected return given these three economic states, their likelihoods, and the potential returns:

Economic State

Probability

Return

Fast Growth

0.2

31.3%

Slow Growth

0.4

6.65%

Recession

0.4

-2.65%

6. You have a portfolio of three stocks: $2,000 in stock A, $3,500 in stock B, and $4,500 in stock C. What are the portfolio weights of stocks A, B, and C, respectively?

7. You have a portfolio with a beta of 1.05. What will be the new portfolio beta if you keep 85 percent of your money in the old portfolio and 15 percent in a stock with a beta of 0.62?

8. Nanometrics, Inc. has a beta of 3.17. If the market return is expected to be 11.35 percent and the risk-free rate is 4.10 percent, what is Nanometrics required return?

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